The new FTC rule prohibits the sale or purchase of fake reviews, requires testimonials to reflect actual experiences, and imposes civil penalties on violators.
'Fake reviews not only waste people's time and money, but also pollute the marketplace and divert business away from honest competitors,' said FTC Chair Lina Khan.
About 90% of consumers rely on reviews when shopping online, emphasizing the importance of authenticity in testimonials, especially with the rise of AI.
The FTC can impose fines up to $51,744 per violation, signaling a stricter approach to combat deceptive advertising and promote fair competition.
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